3
Social institutions and proto-industrialization
Sheilagh C. Ogiloie
Introduction:
proto-industry
and the social frarrrework
Theories about proto-industrialization have, over the last twenty years,
encouraged a flowering of research on early modem European industrial
regions. This research has revealed both important common characteristics in early modern economies, and important differences and
divergences among them. Perhaps the most important common feature
is regional specialization. By the end of the sixteenth century, few parts
'less developed economies'
of Europe remained autarkic
engaging in
subsistence production. Instead, Europe was tuming into a differentiated patchwork of inter-dependent regions, specializing in a variety of
different branches of agriculture and industry, and trading among
themselves through a network of towns and cities (de Vries 1976).
Proto-indusries and regions of commercial agriculture were arising
almost everywhere in early modem Europe.
But important differences and divergences within Europe have
also emerged from studying proto-industrialization. Although protoindustries arose everywhere, different proto-industrial regions developed in radically different ways. A few underwent demographic,
social and economic changes close to those postulated by the
original theories, but many others did not. These differences can
be very enlightening - not just about proto-industrialization, but
also about the wellsprings of social, demographic and economic
change in general. It is now the task of the 'second generation, of
proto-industrialization studies to explain the divergencss,as well as
the similarities, among different European proto-industrial regions.
In this chapter, I will try to show that a great deal of this
divergence - although not all - was caused by profound and
enduring differences in social institutions among European societies.
By 'social institutions' I refer to ttre sets of established rules and
practices through which people organized rheir economic, social, demographic, political and cultural activities. For economic development, the
23
24
SheilaghC. Ogih)te
most importaat existing institutions in early modern Europe were
landholding systems, communities (villages, towns, cities) and corporate
groups (guilds and merchant companies). There were also tl'no net)J
instirutions which expanded rapidly during the early modem period: *re
state and the market.
All of these institutions varied a great deal among different societies sometimes even among different regions of the same country. All of
these institutions also changed over time, as they interacted with one
another and were influenced by demographic, economic and political
changes. In the brief space at my disposal here it is naturally impossible
to provide a complete survey of the numerous social and institutional
frameworks which existed in European proto-industrial regions. Here, I
will simply point out some impoftant general features of the social and
institutional framework, its wide variability across the continent of
Europe, and its development over time, which were not recognized in
the early literature on proto-industrialization, and suggest ways in which
they may constitute an important focus for furure research.
Social institutions constrained most forms of economic, social,
demographic and cultural activity in early modem European societies,
yet they have been surprisingly neglected by both the theories of protoindustrialization and the criticisms of them. A cenual component of the
original theories proposed in the 1970s was that proto-industrialization
cleared away the obstacles to industrial capitalism in Europe by breaking
down tadiional social institutions (seigneurial systems, village communities, privileged towns, guilds, merchant companies), and replacing
them with unregulated markets. Yet this was theoretically assumed,
rather than empirically demonstrated, and subsequent research on
proto-industrialization has not confirmed it.
In some parts of Europe, village communities and ttre institutions
regulating access to land and setdement rights were already weak,
without proto-industrialization. This was the case, for example, in most
areas of England, Flanders and the Netherlands, and in parts of highland
Switzerland (e.g. Kanton Zldrich, Appenzell-Ausserrhoden) and of the
Rhineland (e.g. Krefeld and the ITuppenal) (Braun 1978; de Vries
1974; Kisch 1981b; Kriedte 1982b; Macfarlane 1978; Tanner 1982;
ufrightson 1982). The causes of this weakness of community and
seigneurial institutions are a matter for lively debate by historians;
however, proto-industrialization is clearly not the cause, since communities were weak in these societies in agrarian areas as well as protoindusrial ones. Ttrere were also many parts of Europe, as we will see on
pp. 27-30 of this chapter, in which community and seigneurial institutions remained strong despite the existence of proto-industry, and
Socialinstitutionsand proto-industrializarion
25
played a major role in the development of the economy and society
iuring proto-industrialization.
Likewise, in some parts of Europe, craft guilds and merchant
companies could easily be evaded by moving industrry outside the towns.
This was the case in England, where the state was too weak to provide
support or enforcement for the institutional privileges of towns over the
countryside (Clark and Slack 1976) . It was also the case in Flanders and
the Netherlands, where the large number and density of cities created
roo much inter-urban competition for effective control of the countryside, or effective capture by a single city of state enforcement for its
privileges against all the other cities (de Vries L974). But, as we will see
on pp. 3G-3 below, in most other parts of Europe cities and corporate
groups exercised considerable influence over rural industry, throughout
proto-industrialization. Seldom, outside England and the I-ow Countries, were putting-out and proto-industrial exporting the domain of
'capitalist' entrepreneurs; instead, they were monopolized by
individual
guild-like companies of finishers and merchants with state privileges. In
some pafts of Europe, proto-industrial workers were unregulated and
unorganized; in others *rey set up guilds, even in the countryside, to
defend themselves against the merchant companies, and to exploit their
own employees and suppliers (especially females and young people, who
were often legally prohibited from engaging in the more lucrative stages
ofproduction).
Social institutions thus varied widely across European regions, both
before and during proto-industrialization. It cannot be said that in
general strong non-market institutions prevented proto-industries from
arising. Indeed, as we will see, there are many cases in which it was
precisely the strength of specific non-market institutions which artificially created favourable conditions for proto-industry, for instance by
lowering the cost of labour. Nor can it be claimed that in general protoindustrialization broke down non-market institutions and replaced them
with markets. Indeed, in most regions, social institutions other ttran
markets profoundly and enduringly influenced how proto-industries
developed.
Social institutions
and costs
\?hy and in what ways did social institutions have such strong effects on
proto-industry? A useful way ro think about this question is in terms of
cosrs.Like any form of production, proto-industries faced costs for their
nputs - raw materials, labour, capital and sometimes land. They also
faced what are called 'transactions costs' - costs of Eansponation,
26
SheilaghC. O$vie
negotiation, information, contract enforcementr protection from coercion and so on. Transactions costs affected many aspects of production
itself (such as embezzlement of raw materials, quality maintenance and
responsiveness to changes in demand). They also affected almost every
aspect of marketing and selling proto-industrial output. A proto-industry
was more likely to arise in a region where the particular mix of inputs
required by its technology could be obtained, and where export markets
could be reached, at lowest cost. Once in existence, an industry would
tend to organize production so as to take advantage ofthe characteristics
of the region, in order to continue to minimize costs. Any industry
which failed to exploit cost advantages would find itself undercut in all
but very monopolistic export markets, since input costs were a major,
although not the onln influence on oulput prices.
Especially in a pre-industrial economyr cost should be understood in
the usual economic sense of oppomnity cosr- not just in money, but in
terms of foregone alternatives. For example, in a region with fertile soils
and easy accessto land people had good potential earnings in agriculture,
and the oppornrnity cost of working in proto-industry was high; infertile
soil or institutional restrictions on accessto land lowered the oppornrnity
cost of proto-industrial labour. In pre-industrial Europe, just as in
modem developing economies, many inputs were not formally traded in
markets, and thus did not have money prices, but they did have
opportunity costs for the economic agents concerned, and it is this cost
which is analydcally important.
N7hat determined these costs? One important determinant was
physical geography: climate, soil, natural resources, energy supplies,
topographical barriers to tr:rnspoftation, location near trade routes and
so on (Mager 1988). But proto-industries arose in regions with no
special physical characteristics to favour their development. Even
industries with the same technical requirements could arise in a variery
of environments, and could develop very differently as a consequence.
Moreover, many regions with infertile soils, good energy supplies, or
cheap sources of raw materials failed to develop proto-industries.
Physical factors alone, therefore, were neither necessarynor sufficient to
cause proto-industries to arise or to develop in specific ways.
This is not surprising: input costs and oulput prices can be aflected by
other things than characteristics of the physical environment. In
particular, they are affected by the social institurroas governing the
transactions through which inputs are obtained, production is organized
and output is sold. In European proto-industries, this means we must
examine the ways in which markets in land, labour, capital, raw
materials, and industrial output were regulated by village communities,
Socialinstitutionsand proto-industriatization
27
landholding systems' urban centres, occupational corporations such as
guilds and merchant companies, and - not least - ttre emerging early
\$(/hatmattered was not so much *re strenglh or weakness
rnodem state.
but the precise way in which they inflated or
institutions,
of these
costs.
reduced
Community
institutions
Community institutions often regulated whether people could settle,
work, hold land, use conrmon resources or marry. This was especially
the case in societies in which landlords were relatively weak, but village
'second serfdom',
communities could also be strong in areas of the
even though in these areas seigneurial institutions were stronger and
had the final word. Because of the regulatory powers they enjoyed,
communities often controlled the availability, and thus the cost, of
labour, land and natural resources. The original hypotheses argued that
proto-industrialization required, and furthered, the breakdown of
community institutions (Mendels 1982: 80; Kriedte, Medick and
Schlumbohm 1981: 8, t6-L7,40). But researchdoes not confirm this.
Where weak community instinrdons lowered industrial costs, protoindustry might, holding other factors constant, seek out communities
whose institutions were already weak; *ris appears to have happened in
Switzerland (Braun 1960) and in England (I-evine 1977). But o*rer
factors also affected costs, and we therefore find proto-industry in areas
of strong community institutions where other factors favoured it. An
example is Scodand, where proto-industries arose in arable regions with
strong communities because the 'cottar system' in such regions lowered
the costs of proto-industrial labour compared to pastoral regions where
communities were weaker but other factors were unfavourable (Whyte
1989: 23 l, 237 -8, 243-5).
Cenain strong community institutions ac$ally encouraged protoindustry by lowering its costs. Thus in Twente, in the Netherlands, the
strong community institution of ttre marken system gave hereditary
rights of access to cornmon land to a group of established peasant
families, excluding the rest of the population, which therefore tumed to
proto-indusrial
work; that is, community institutions in Twente
reduced the oppornrnity costs of labour in proto-industry by preventing
a part of the population from engaging in agriculture (Flendriclor 1993:
330-1).
In Cento, in northem Italy, access to all land was regulated by a
community institution called the partzcipanza, which distributed a share
of land to each family according to its size, but only as long as family
28
SheilaghC. Ogiloie
member€ remained resident in the village. However, each share was not
sufficient for a family's subsistence, so instead of emigrating (which
would have lost their family its right to a land share), a large part of the
population stayed in the community but turned to proto-industry to
supplement their eamings from farming their insufficient land share.
That is, community institutions in Cento provided strong incentives to
the population to remain in the countryside but engage in industry,
thereby reducing the oppornrnity cost of proto-industrial labour
(Belfanti 1993: 265-6).
In most European regions, including proto-industrial ones, communities laid down a dense network of rules about how land could be held,
sold and inherited, how labour could setde, reproduce and be employed,
how capital could be lent and borrowed, how natural resources could be
used, and how agricultural products could be bought and sold. In the
dense worsted proto-industry in the south German duchy of t$?ii'rnemberg, for instance, throughout the seventeenth and eighteenth centuries
strong communities regulated marriage, setdement, labour mobility,
output markets and women's work, and helped enforce market regulation
by rural proto-industrial guilds (Ogilvie 1986, 1995). Similarly, in the
rural cotton proto-industry in the Waldvienel of I-ower Austria, until the
1780s village communities stricdy enforced the one-heir inheritance
system, stringently controlled new settlement and restricted accessto and
use of common lands, thereby affecting labour costs, demographic
behaviour and social strucftlre (Berkner 1973; Komlosy 1988).
Community rules, which varied enormously across Europe, affected
the costs and prices of most factor inputs and most products. Counter to
the original arguments of the theories of proto-industrialization, communities were not broken down, weakened, or even uniformly affected,
by proto-industry. The influence of proto-industry on communities was
extremely various: in some parts of Europe they were already weak, even
where the regional economy remained agrarian; in others, communities
remained strong, even where the regional economy shifted over to
proto-industry. In such regions, community institutions themselves
shaped proto-industry, helping to decide whether a rural population
would turn to proto-industrial work, which gtoups would do so, which
tasks they would engage in and whether their demographic behaviour
would change.
Landholding
institutions
Proto-industry is supposed to have required, and furthered, the breakdown of traditional institutions governing landholding and agriculture,
Socialinstitutions and proto-industrialization
29
to
and is poffrayed as a major force in the transition from feudalism
16-17, 40;
(Kriedte,
8,
and
Schlumbohm
l98l:
Medick
capitalism
Mendels 1982: 80). But this ttreoretical proposition has not been borne
our empirically. For one thing, proto-industries arose throughout
continued
eastem central and eastern Europe, where feudal institutions
'feudal protothat
these
It
was
originally
argUed
centuries.
for
to survive
industries' arose only in areas where feudalism had begun to weaken.
But Rudolph has shown that they arose throughout Russia in areas of
classic feudal production on large estates, and were not associated with
'breakdown' of the serf system as the commutation of
even such a partial
labour dues to money payments (Rudolph 1980: 111, 1985: 48' 54'
57-61,63). Strong feudal institutions could positively mcourage protoindustries by decreasing their costs. Thus in Bohemia after 1650, the so'second serfdom' strengthened lords' powers to benefit from their
called
peasants' industrial activities (through feudal dues and contract payments from foreign merchants), to urge (and even occasionally compel)
their peasants into proto-industrial work, and to keep proto-industrial
'forced wage labour', exploitation of labour services
costs low through
for proto-industrial auxiliary tasks, and restricting peasants' altemative
options (Klima 1959: 35' 38' 1974: 5L' 53; My5ka 1979: 59-63). In
addition, strong feudal institutions encouraged proto-industry in both
eastern Europe and northem Italy by weakening the industrial monopolies of urban guilds (Belfanti 1993; Klima l99l). In the Swedish iron
proto-industry, seigneurial institutions remained strong enough to
prevent the rise of a land-poor proto-industrial labour force on the
English pattern, but had weakened too much to provide an adequate
supply of forced labour for transport and charcoal buming as in Russia
(Flor6n et al. 1993). Thus what mattered for proto-industry was not so
much the 'strengthening' or 'weakening' of feudalism, but rather the
specific effect of feudal institutions on industrial costs.
Non-feudal landholding institutions also affected industrial costs. In
eastern Rumelia in Bulgaria, for instance, landholding institutions
supported by the Ottomans enabled large landowners and graziers to
hinder settlement of wastes and restrict access to land until 1878,
anificially creating cost conditions favouring proto-industry (Palairet
1982). In Tuscany, sharecropping tenancies adjusted farm size to family
membership and contractually obliged tenants to labour for the landlord, ttrereby precluding proto-industrial employments @elfanti 1993).
In Ravensberg in rJfestphalia, the 'Heuerling' ('coftager') system interlinked landholding with labour relationships: peasants permitted Heuerlinge to settle on their farms and to rnake defacn (although not legal) use
of the common lands, in exchange for having a right to demand their
Sheilagh C. Ogiloie
labour when it was needed on the farm. The combination of agricultural
day-labouring for the peasants and use of commons was not enough for
Heuerlinge to suryive, so they also engaged in proto-industry in the
interstices left by the labour demands of the peasants. Empirical research
has shown that this agrarian institution affected the labour available for
proto-industry, the seasonality of production, the demographic and
familial behaviour of proto-industrial producers and the resulting social
structure (I(riedte, Medick and Schlumbohm 1992: 85,24V2; Schlumbohm 1992).
As research such as ttris shows, landholding institutions also affected
social structure and demographic behaviour in proto-industrial regions.
In *re Waldviertel in I-ower Austria, for instance, strong seigneurial
and communal controls over landholding and settlement permitted the
existence of a rural cotton proto-industry, but prevented proletarianization and population explosion (Mitterauer 1986). In proto-industrial
areas of Switzerland, France, \Ttirnemberg and Upper Lusatia,
smallholding systems remained strong, and proto-industrialization
failed to transform the rural social structure or abolish agricultural byemployments (Kriedte, Medick and Schlumbohm 1992). Even where
proto-industrial groups were landless, institutions such as the Heuerling
system continued to influence the organization of proto-industrial
labour within the family. By affecting the oppornrniry costs of labour
and other resources, landholding institutions had far-reaching effects
on the options of proto-industrial workers.
Guilds and cornpanies
Proto-industrial costs were also affected by corporate groups such as
guilds and merchant companies. According to the original theory, protoindustries arose in the countryside precisely to avoid corporate regulations; by doing so, they are supposed to have hastened the breakdown of
guilds and companies (Kriedte, Medick and Schlumbohm l98l: 7, 13,
22,106, Ll5,128; Mendels l98l: 16, 26). But this idea is based on an
unjustified generalization of the experiences of England and the I-ow
Countries, where urban and guild powers over the countryside appear to
have been breaking down in *re sixteenth century independendy of
proto-industrialization (de Vries 1974; Kellen 1958). It is important to
recognize that this was quite exceptional. Almost everywhere else in
Europe, proto-industries were regulated by corporate groups of 'capitalistsz, and often also of 'workers', well into the eighteenth century.
In this context, the corporate groups of 'capitalists' - the merchant
companies which enjoyed monopolies and other state privileges over
Socialinstitutions and proto-industrializarion
3l
the
6ost European proto-industries outside England, Flanders and
- should not be confused with modern capitalist corporaNetherlands
much closer in nature to guilds:
tions. Merchant companies were
'merchant
guilds' or guilds of finishing
indeed, they often originated as
crafts (such as dyers), and were issued with state charters which strongly
resembled those of guilds. Merchant companies and guilds shared many
characteristics. As a general rule, a merchant company was not a
voluntary association any more than a guild was: it was a corporate
organizadon which one was compelled to join if one desired to operate
as a merchant in a particular community, or if one wished to trade in a
particular commodity. Many proto-industrial merchant companies
either altogether refused to admit any new member who was not the son
or relative of an existing member, or charged prohibitively high fees for
the admission of outsiders, much higher than the admission fees charged
by ordinary craft guilds (Kisch 1972; Thomson 1982; Troeltsch 1897).
Above all, both guilds and merchant companies enjoyed legal monopolies and other state privileges over production and trade in particular
sectors of the economy, which they used to prevent competition by nonmembers of the corporate group, and to increase their own profits by
charging higher than competitive prices to customers and paying lower
than competitive prices to their suppliers and employees.
The privileges of guilds and merchant companies were often, but not
always, associated with the institutional powers of urban centres. One
frequent criticism directed at the original theories of proto-industrialization is that they ignored the many stages of proto-industry carried out in
towns and cities (Cerman 1993; Poni 1985). In few European towns
outside England and the Ilw
Countries did guilds and merchant
companies lose power before the late eighteen*r cennlry, whatever
happened in the countryside. France was a transitional case, in which
towns gradually began to lose their powers during the first half of the
eighteenth century, although they retained a number of privileges until
at least 1760 (Gayot 1981; Guignet 1979; I-ewis 1993; Poni 1985).
Since a corporare monopoly sought to reduce prices paid to suppliers
and increase prices charged to customers, an effective guild or company
in an urban stage of proto-industry was very likely to affect the costs
faced by rural workers, irrespective of whether these also possessed a
corporate organization. Urban guilds in one industry could also increase
costs of other industries, as shown by the successful lobbying of woollenand silk-weaving guilds to impose restrictions on the cotron industry
(Mager 1993; Thomson 1991).
Rural proto-industrial workers also formed their own guilds. In the
small iron goods industry of Berg (in western Germany) and the
32
SheilaghC. Ogiluie
trimmings industry of the Erzgebirg-Vogtland (in eastern Germany),
rural workers 'formed corporate gtoups in the same way as urban
craftsmen, to secure the "livelihood", regulate training, enforce quality
standards, and implement their interests vis-i-vis the entrepreneurs and
putters-out' (Mager 1993: 188). Rural or'regional' guilds formed under
similar pressures, and sought similar forms of control over input and
output markets, in a wide variety of other industries, particularly in
central Europe and northern Italy: in the Wuppertal linen proto-industry
(Kisch 1972); the l7tirttemberg linen and worsted proto-industries
(Medick 1983a, 1983b; Ogilvie 1986, 1990); the east Swabian textile
region around Ulm and Augsburg (IGe{3ling l99L: 44-5); the Austrian
linen-weaving (Hoffinann 1952: 103fr), cofton-production @erkner
1973: L23tr; Komlosy 1988, 1991; Matis 1991), scythe-making @ischer
1966: 19ff) and small-iron-goods proto-industries (Flassinger 1986:
950); the linen and woollen proto-industries of northem and northeastern Bohemia (I{ima 1991); and the Trompia valley gun-making
industry of northern Italy @elfanti 1993). Other rural proto-industries,
such as the Prato woollen industry in northem Italy (Belfanti 1993)
simply retained their medieval guilds.
What was the economic impact of these proto-industrial guilds and
companies? It is sometimes claimed that the negative impact of guilds
has been exaggerated. In the sense that guilds did not prevent protoindustrialization altogether, tJris is certainly true. But whether they
benefited any given social group or proto-industry, let alone the wider
economy, can only be established by detailed study. Corporate groups
sought to reduce input costs and increase output prices for their own
members. To achieve this they implemented a variety of measures entry barriers, oulput quotas, quality reg.:lations, technical restrictions,
wage ceilings, price floors - which were enforced with varying effectiveness. How any given corporate group afiected costs and prices in any
given proto-industry therefore requires detailed investigation, of a soft
which has, in most cases, not yet been carried out. However, some
general results can be identified.
Alttrough guilds and companies were not invariably opposed to
productivity-enhancing changes in technology or the organization of
production in themselaes,they did oppose such changes where these
threatened their corporate ability to prevent competition, charge
monopoly prices and restrict the pay of their employees and suppliers
(such as the female spinners, undoubtedly the most numerous and
surely the most e:iqrloited proto-industrial worldorce in Europe).
Violent political struggles broke out when aftempts were made to
reduce guild and company privileges in proto-industries as far afield as
Social institutions and proto-industrialization
(Klima 1991), \ilTtirttemberg (Medick
Ausria (Cerman 1993), Bohemia
(fhomson
1913a; Ogilvie 1986), the Wuppertal (Kisch 1972), France
(fhomson
1991;
lg82),Italy (Belfanti 1993; Poni 1982a), and Spain
Torras 1991). Many of these struggles did not reach their climax until
the late eighteenttr century. The abolition of corporate privileges was
often followed by an industrial boom, as with the abolition in 1770 of
the Prato rural weavers' guild in northern Italy, or that of the
Schwechat company in Austria in 1762. This, combined with *re fact
that people do not expend resources to defend valueless privileges,
suongly suggests that these corporate groups were able to exercise
significant influence over costs and prices, and that they consuained
growth in many proto-industries until the late eighteen*r or early
nineteenth centuries.
Guilds and companies were particulady important for protoindustries in regions where the dominant political institution was the
city-state, such as in central and northern Italy (Belfanti 1993).
German and Austrian guilds and companies also owed their power to
*reir symbiotic relationship with the state (Ogilvie 1992). Few if any
proto-industrial guilds or merchant companies survived without state
suppoft, as is shown by examples from proto-industries in France,
Spain, Sweden, and many other parts of Europe. Indeed, it is rare to
find a corporate group anylvhere in Europe, whether of merchants or
of workers, which effectively regulated markets without state enforcement. This is one indication of how strongly European protoindustries were influenced by the growing power of the early modem
state. Thus we cannot study proto-industries without also looking at
state institutions and the political framework.
State institutions
Early modem Europe saw the rise both of proto-industries and of the
modem state. Yet the role of the state is one of the least-researched
aspects of proto-industrialization. Partly, this neglect is a reaction
against interpreting state policy as a mirror of reality. Closer empirical
research shows *rat often state economic policies and industrial
legislation did not have the intended outcome; but state economic
regulations often had serious unintended consequences. Another reason
for the widespread neglect of the state was that the original *reories
viewed proto-industrialization as causing the transition to 'capitalism'
and 'market society', concepts which are held (often unjustifiedly) to
exclude the notion of state intervention in the economy.
It is now becoming clear that ttris neglect of *re state was an
34
SheilaghC. Ogilaie
over-reaction. Not only successfuleconomic policies but also those that
misfued, and, indeed, state acdons undertaken for non-economic
purposes (to wage war, for instance, or to gain domestic political
suppoft) could have important if unintended economic repercussions.
Vhile states' direct attempts to encourage proto-indusury saw mixed
success, *reir indirect role, particularly in supporring, changing or
challenging other institutions, was substantial.
The litde attention which has been directed at the role of the state in
proto-industrialization has focussed on the attempts by many European
states to set up proto-industries and give them direct suppon. Yet the
vast maiority of these attempts failed, and many were damaging to other
economic endeavours. Thomson, for instance, describes how many
states of central and eastern Europe in which 'corporative economic
structures' predominated tried to encowage calico-printing protoindustries through privileges, monopolies, subsidies, state loans, state
manufactories and coerced labour from serfs. These were overwhelmingly unsuccessful: 'They contributed to an uncompetitive environment and the policy of granting concessions from, rather than
reforming, the corporative system created a siruation of yet greater
institutional complexity unlikely to favour industrial expansion'
(fhomson l99l: 64). I-ewis describes how the French state, foiled by
provincial resistance to new coal laws in the mid-eighteenth century,
began to issue royal mining 'concessions' designed to encourage
technological advance and productivity growth. Not only did these
attempts fail, but one of the reasons for their failure was the local
resistance evoked by the concession holders' privileges enabling *rem to
infringe on local institutional privileges, close down existing producers
and charge monopoly prices (kwis 1993: 24). In Austria, the stateprivileged proto-industrial manufactories were granted a wide array of
special powers raising costs or destroying *re business of other industrial
concerns, yet most failed dismally themselves. The Poneggen hosiery
enterprise in Upper Austria was founded in L764 with a wide range of
state privileges which proved immensely cosdy to other producers, yet
'in spite
of all the official support it received, the undertaking did not
flourish' and eventLlally went bankrupt (Griill 1974: ?9tr,49). The Linz
manufactory, although it limped along with stare support for a much
longer period, causing enorrnous costs to other producers, evenrually
suffered a similar fate @reudenberger 1979). $Thether they contributed
to industrial development is not apparent: certainly this part of Europe
was one of the latest to industrialize. It is equally difficult to trace *re
beneficial effects of most other examples of state assistance, even for
successful proto-industries. Although, therefore, state intervention in
Socialinstitutionsand proto-industrialization
35
ororo-industry was by no means absent, it seldom had quite the effects
iesired by its initiators.
By contrast, state activity - often for non-economic purposes such as
warfare - had massive indirect repercussions on many European protoindustries. Belfanti has shown how military and strategic considerations
led central and north Italian states to grant industrial privileges to
rernote, frontier, or mountainous parts of their territories, enabling the
rise of rural proto-industries in the teeth of urban guild privileges
(Belfanti 1993:260). Military activities also made the state an important
customer for proto-industries, and monopolies to produce textiles and
metal goods for the army were an important component of politicd
patronage (as well as being essential for many otherwise uncompetitive
proto-industries). Monopoly concessions to produce uniform cloth were
crucial for the I-anguedoc woollen industry Sohnson 1982: 2, 4;
Thomson 1982). The Eskilstuna iron-working proto-industry only
'to meet the needs the Swedish army
of
became significant around 1600
and navy'; when *re famous proto-industrial manufactory was estab'the armed forces
lished at Eskilstuna in the mid-seventeenth century,
were the principal customers' (Magnusson and Isacson 1982: 921,
Magnusson 1991: 303). The expansions and contractions of the gunbarrel proto-industrly in *re northern Italian valleys of Brescia were
largely caused by fluctuations in military demand (Belfanti 1993:263).
State purchases were essential for many Portuguese proto-industries,
and subsequendy strongly influenced which proto-industrial regions
industrialized and which de-industrialized (Pedreira 1990: 437-8, 536,
543).
The early modern state exerted an even more significant impact on
proto-industries by reinforcing (or weakening) other social institutions.
As we have seen, communities, landholding systems and corporate
groups influenced setdement, marriage, work, landholding, resource
allocation, access to markets and every form of commerce and uade in
most European proto-industrial regions. They were only able to regulate
so many activities because of the enforcement they got from the state.
In uriuial
states, government was impossible without the cooperadon of local-level institutions, often local communities and landowners. The central state suppofted local rules in tacit exchange for
local co-operation in implementing taxation, conscription and regulation. The impoftance of ttris symbiosis between state and local
institutions emerges from every study of the growth of ,social control,
on the local level in early modern Europe (Ogilvie lgg2). Its
importance for proto-inclustries, as we have seen, emerges from almost
every micro-study.
36
Sheilaghc. Ogilaie
In ciqrstaus, the community was co-extensive with the state, and often
urban grrilds and companies played an important role in the government. This was an imponant factor influencing proto-industrialization
in northem and cenual Italy @elfanti 1993), ttre territories of the
German Free Imperial Cities (IGe8ling 1991; Kisch 1981b), and to a
considerable extent also the territories of the Swiss Federation (Braun
1978).
In feudal slates, which existed in different forms in eastem Europe,
parts of Italy, and the micro-states of southem Germany, either the
prince was also the major landowner, or the great landowners enjoyed
goverrrmental as well as tenurial powers over their peasants (Belfanti
1993; Kiefjling 1991; Kisch 198Ib; Klima 1991; Palairet 1982i Rudolph
1985). The establishment and control of proto-industries by feudal
landlords were only possible because in such territories ttre state and the
seigneurial system supported one another.
It was often not until the second half of the eighteenth century (or
even later), and thus only towards the very end of the period of protoindustrialization, that most European states became strong enough to
begin to try to dispense with the support they obtained from traditional
social institutions - whether these were local village communities, towns
and cities, guilds and companies, or feudal landlords. Even then, there
was almost always a prolonged phase during which these institutions
retained significant ponions of their traditional powers. Even if they no
longer enjoyed complete monopolies, even if they were facing competition from new institutions, they nevertheless retained imponant privileges, which often enabled them to exercise real economic effects on
proto-industries (and other economic sectors) for generations longer.
During this phase, production and trading activities which violated these
institutions' surviving privileges continued to be persecuted and penalized; at best, such activities constituted a 'black market' or 'informal
sector' (as it is called in modern developing economies), not an open
and regulated 'market economy'. Moreover, the institutional arrangements with which the state formally replaced the traditional institutions
of communities, landlords, guilds and companies were generally not
open markets, but rather countervailing structures of privileges and
monopolies (such as those of the 'Fabriken'- manufactories - in Austria
and Bohemia), protecting the interests of new and favoured social
groups, and enforced with new effectiveness by the rationalized administrative apparatus of the 'enlightened' absolutist state.
The emerging modem state thus played a range of roles in European
proto-industry. It intervened directly, *rough not often effectively, to
encourage proto-industrial enterprises. It made war, collected taxes,
Social institutions and proto-industrialization
37
barriers,
captured and administered colonies, and set up customs
proto-industries
rr"jping to shape the expon markets within which
provided support to the other
op.."t"a. Above all, however, the state
- whether communities, landlords, guilds and companies, or
instirudons
protective regulation emerging from
the new smtctures of privilege and
impact
the late eighteenth century on which had such a wide-ranging
into
often
survived
on most European proto-industries and, indeed,
industrialization ProPer.
Conclusion
Perhaps the greatest service performed by the concept of proto-industrialization is to have generated so many studies of the samephenomenonin
such a wide variety of contexts, thereby making comparisons across
societiesmore fruitfrrl than is ordinarily the case.These comparisons have
revealed an important cogunon feature throughout early modern Europe:
an enduring specialization of production, creating a network of interdependent regions of agriculture and proto-industry linked by urban
centres with one another and the non-European world.
Yet such comparisons have also revealed profound differences and
divergences among European societies. Some proto-industrial regions particularly in north-westem Europe - experienced economic growth,
social transformation and ultimate industrialization. Sadly, many others
did not, and this had enduring consequences for their economic and
political futures, particularly in the case of eastem Europe. A major
factor behind these diferences in proto-industrialization - and, by
implication, economic development in general - appears to have been
the framework of social institutions, which profoundly affected the costs
of diferent economic, social and demographic decisions. Deeper
investigation of these social institutions, and closer analysis of their
effects, may hold out the best perspectives for explaining differences in
economic development, certainly in early modem Europe, and perhaps
in pre-industrial societies more generally.
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